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North West Experiences Fall in Equity Investment in 2022, According to New British Business Bank Report

Published today, the British Business Bank’s Small Business Finance Market 2022/23 report highlights a decline in equity investment in the North West, with activity also slowing considerably across the UK since Q3 2022.

In the North West there were 108 announced equity investments into smaller businesses in the first three quarters of 2022, a 5% decrease compared to the equivalent period of 2021. The value of announced equity deals was also down by 35%, with the total investment value in the region being equal to £482m . Whilst lower than the record high of £863m for the full year of 2021, Q1-Q3 2022 still exceeds the £279m of investment in the region in the full year of 2020.

Demand for external finance falls

With various economic headwinds impacting the activity of UK businesses, appetite for finance has subsequently taken a knock. Overall demand for external finance has dropped significantly, from 44% among North West based smaller businesses during Q3 2021 to 29% last year. This was also reflected across the UK, with only 33% of small businesses using external finance in the third quarter of 2022, compared to 44% the year prior.

Across the UK, £35.5bn of bank lending came from challenger and specialist banks in 2022, exceeding lending by the major banks during the period, giving challenger and specialist banks a 55% share of the market. At the end of 2022 Starling Bank announced plans to open a new Northern office in Manchester, set to bring 1,000 new jobs to the region.

Net zero equity investments outperform the wider market

With growing concerns around reducing carbon emissions, the move to a greener, more sustainable economy continues to impact the equity market. Nationally, the report found that net zero deal numbers grew faster thanthe wider equity market in Q1-Q3 2022, compared with Q1-Q3 2021. Whilst only accounting for five per cent of SME equity deals in 2018, SME net zero deals have already risen to 12% in Q1-Q3 2022.

The North West saw net zero related deals accounting for over £114m worth of investment between 2018 and Q3 2022, a 3% share of total UK deals.

One such innovative business from the North West is Cheshire-based Intelligent Building Group (IBG), part of the Northern Powerhouse Investment Fund. It received a £580,000 investment in 2022 and is looking to continue its innovations in energy monitoring and reduction. Having developed software that captures energy usage data across commercial, industrial and residential developments, the team are helping developments across the region to cut energy consumption and, ultimately, carbon emissions.

Sophie Dale Black, UK Network Director for the North of England at the British Business Bank, said: 

“Today’s report shows how small businesses across the North West are adapting to a more challenging economic climate as they reduce their use of external finance. However, we are seeing strong growth for challenger and specialist banks as businesses seek alternative finance options to help drive growth.

“There are also promising signs of growth in the North West’s net zero deal sector as equity finance markets respond to growing demand for investment in green innovation. Particularly as regions like Greater Manchester have set ambitious net zero targets for 2038, continued net zero investment remains crucial for the region’s sustainable economy.”

One Heritage Group Plc Completes County House Project in Oldham

One Heritage Group PLC (LSE: OHG), the UK-based residential developer focused on the North of England, is thrilled to reveal the practical completion of County House, Oldham, its first completion of a development management project.

Acting as the Development Manager for the project, One Heritage has overseen the transformation of the former Oldham County Court, following its closure as a court in 2017, into 42 high-quality, one to three-bed apartments. The site was acquired in February 2020, with One Heritage securing planning permission for residential conversion in June 2021.

Construction work commenced in September 2021, with Winworth Construction Limited appointed as the principal contractor. The wider project team included Studio KMA Limited (Architect), RJD Associates (Principal Designer) and Neo Projects Limited (Employers Agent).

The scheme was sold to Arcon Housing Association, a subsidiary of Bolton at Home, via a Forward Fund Agreement, and all 42 apartments will be let at affordable rents boosting the availability of affordable housing in Oldham Town Centre.

County House Oldham 1
County House – Oldham

The scheme contributes to a wider regeneration programme in Oldham Town Centre, which is seeing major improvements to residential stock, retail areas and the creation of new venues for work, leisure and entertainment. One Heritage is delighted to have been instrumental in breathing new life into a vacant building and its residents will soon be able to benefit from the redeveloped Spindles Shopping Centre and new food hall in the Grade II listed former Town Hall.

Jason Upton, One Heritage CEO, commented: “We are thrilled to see the completion of County House. The scheme marks the completion of our first partnership with a housing association, and we are grateful to the entire project team for their work on the scheme. Not only are we really pleased with the quality of the product provided, but we are also delighted to have transformed a local landmark building which is centrally located.”

Q1 Rush of Leases Agreed at One of Manchester’s Landmark Commercial Offices

The team at Manchester International Office Centre (MIOC) has agreed several new tenancies totalling over 7,000 sq ft of space.

 

Following a refurbishment of one of MIOC’s larger suites, the newly designed offices were under offer before the works were completed. Tenants will have the added benefit of being sited in MIOC’s first decarbonised space.

 

Martyn Makinson, CEO at FourPointZero, a leading recruitment business focused on the XR and Metaverse, moved into MIOC just after Christmas said: “MIOC appealed to us immediately. It’s like no other commercial building we viewed – it’s modern, spacious and full of natural light. Being a specialist recruiter in the tech industry that has developed exceptional candidates and a global client base, we’re seeing rapid growth.

 

“This move is a testament to our team’s hard work and dedication; we’re excited to see what the future holds for FourPointZero especially now we’re actively looking for new team members. I’m committed to creating a positive and productive work environment for our employees – something MIOC can help us achieve.”

 

Liam MacCarthy, director at MIOC investment manager Till AM, said: “We’ve invested into this suite at MIOC and it has provided an immediate return with these individual offices being taken up in a matter of just a few months.

 

“These suites are included in our first phase of decarbonising MIOC; we’ve removed all gas from this section of the building, replaced the windows and insulated the area. With MIOC being such an historic building, making these significant changes to its carbon footprint is not a simple job. But with the success of this floor, we’ll be investing in and renovating a further 8,000 sq ft suite this year and continuing to add further carbon-neutral credentials to MIOC.”

 

The other new companies joining MIOC’s thriving business community include logistics and forwarding business, Savino Del Bene,  Jas Aerospace and SRS Recruitment, that are both current tenants that are expanding by doubling their footprint at MIOC.

 

Situated at a prominent position at the junction of Styal Road on the A555 with easy connections to Manchester Airport, the M56, Metrolink and Heald Green train station. The building was designed by Cruickshank and Seaward in 1953 and offers a level communal space that is never seen in modern buildings. Alongside great facilities, MIOC has a active business community, multiple EV charging spaces, social events throughout the year, gym, café and large communal garden for all tenants.

 

For more information see www.mioc.co.uk or agents Edwards & Co. or Colliers.

Lsh Auto Sponsors Mancunian Unity Women FC

A sponsorship deal has been announced between LSH Auto, part of LSH International, one of the largest dealer groups for Mercedes-Benz cars worldwide, and Mancunian Unity Women FC.

 

Founded in 2019, Mancunian Unity Women FC is a women’s and girls’ only football club that provides fee-free football for all ages, high quality coaching and equipment, a sense of belonging, and support in a non-judgmental, inclusive environment.

 

As one of the club’s main sponsors, the logos of LSH Auto and its local dealership, Mercedes-Benz of Stockport, will be proudly displayed on shirts across all teams.

 

Mancunian Unity Women FC Manager, Phil Burke said: “Women’s football teams usually begin as an add on to an already established male team. We aim to challenge and change that. Our ambition is to become the biggest and most successful women’s and girls’ only football club in Greater Manchester and beyond. We strive to provide the best possible pathways, opportunities and experiences for all our women and girls within football, as well as breaking down barriers that exist within women’s football.

 

“Our ambitions are massive both on and off the pitch, establishing a partnership with a company as huge as LSH Auto highlights how seriously we are taking reaching our goals. We are excited to welcome LSH Auto into the Unity family, whilst connecting our skills and passion to create more opportunity within women’s football and continue to build our amazing club.”

 

Player, Danielle Cooper said: “At Unity, we always pride ourselves on being more than just a team; we’re family. Our kit represents this perfectly. The intricate design of the Manchester Bee resonates with everyone involved with the club, and many who come to support us for obvious reasons.

 

“The management team at Unity, ensure everything is done to a high standard so we were not surprised when we saw the designs for our new kit – it’s classy, effective and portrays a powerful message of being ‘united’ as a squad.

 

“We are honoured to be sponsored by LSH Auto and Mercedes-Benz of Stockport. For us to be recognised by such a successful company, only signifies how much this club has already achieved, and how far we are yet to go. We are already overwhelmed with the support and encouragement received from the Mercedes-Benz team and can’t wait to take our new sponsor on this journey with us to the top!”

 

Mancunian Unity Women FC are currently top and unbeaten in the Greater Manchester Premier League. If they win the league, they will be promoted into the North West Regional League.

 

Tracy Ellam, Operations Director for LSH Auto, said: “We thoroughly enjoyed welcoming Mancunian Unity Women FC to our showroom this week and meeting some of the players. At LSH Auto, we’re committed to giving back to the communities that support us. That’s one of our core principles. We’re also passionate about diversity, so we’re really pleased to be supporting a club with such positive values that really align with our own. I look forward to continuing to watch them go from strength to strength.”

 

With Mercedes-Benz dealerships in the Midlands and the North West, LSH Auto offers all-new models from the Mercedes-Benz and smart car collection, premium approved used vehicles and exceptional aftersales services including maintenance, repairs, servicing, parts and accessories.

 

For more information visit lshauto.co.uk.

Fast Growth 50 Launches Search for Fastest Growing Northern Companies

Small and mid-sized businesses with combined annual turnover of £4 billion and responsible for 20,000 new jobs expected to make series of national and regional Fast Growth 50 league tables

The Fast Growth 50 index, an extensively researched league table of the fastest growing companies, is now open to applications for growing businesses across the UK.

Created in Wales 25 years ago by Professor Dylan Jones-Evans OBE, the Fast Growth 50 will, for the first time, identify the top-performing fast-growth firms in the North of England, celebrating their achievements as regional champions and helping them to continue making a difference to the UK economy.

 

In partnership with UBS, the world’s leading global wealth manager, Fast Growth 50 will rank the companies based on turnover growth in eight nations and regions across the UK.Those named in the North of England index will be celebrated at the Fast Growth 50 awards event to be held in Manchester later this year.

 

To be considered for the 2023 Fast Growth 50 indices, a business must have had sales of at least £250,000 in 2020 and £1 million in 2022, be an independent or privately held business (not a branch plant or wholly owned subsidiary) and be based in the region that they are applying for. The index is then ranked on the highest percentage growth of turnover between 2020 and 2022.

 

Professor Dylan Jones-Evans OBE, founder of Fast Growth 50, said: “Since we published our first list, we have seen the massive impact that the fastest growing firms in Wales have had on the economy In 2023, we are proud to be taking this important programme to the North of England as we believe it is important to highlight the impact that the best-performing businesses have on every nation and region in the UK. The goal of the awards has always been to promote those small and mid-sized companies that are the innovators that lead their towns and cities, no matter what the economy throws at them.”

 

According to the latest report from the Scaleup Institute, fast-growth firms, which are normally defined as achieving 20% growth per annum, make up less than 0.6% of the UK business population but represent 50% of total SME turnover output. Research has also shown that this elite group of companies are more productive, innovative, and export-oriented than other businesses. Despite an impending recession, nine of 10 plan to grow further in 2023.

It is estimated that the 400 high-growth firms identified by Fast Growth 50 in 2023 will have increased their sales by £4 billion per annum and generated 20,000 new jobs every year.

“We have recently seen how the North of England is punching above its weight and is home to businesses that are really changing the economy,” added Jones-Evans. “Through important interventions such as the Northern Powerhouse, a new vibrant business environment is helping to increase the number of scaleups being developed across the region from Liverpool to Leeds and from Manchester to Newcastle. It’s time that the impact of these businesses is recognised and I am delighted that we will be celebrating, for the first time, the 50 fastest growing firms in the North of England in 2023.”

 

Mark Goddard, Head of UK Regions at UBS Global Wealth Management said: “We’re proud to see UBS become the lead sponsor of the Fast Growth 50 index, as it expands to shine a spotlight on the fastest-growing small businesses across the UK. Business owners and entrepreneurs are the engine of our economy, and UBS has a long history advising and connecting them on each stage of their wealth journey, helping them to unlock their potential. We look forward to joining the Fast Growth 50 team on this journey and can’t wait to see what ideas, innovation, and talent we uncover during the process”.

To enter your business for the 2023 Fast Growth 50 index and to receive more information about the initiative, visit: www.fg50.co.uk

Landwood Group and Wignall Brownlow Reveal Powerhouse Partnership

Property and business asset specialists and Chartered Surveyors Landwood Group and Wignall Brownlow have joined forces to provide a stand-out recovery and restructuring service, they have revealed.

The enlarged group benefits from extensive strength in depth, offering clients a complete service, dealing with the widest possible range of recovery and restructuring cases across the Northwest and beyond.

Based in Manchester the group will provide expert advice, including appraisals, valuations and disposal strategies. This includes asset disposals to achieve market-leading realisations for property and plant and machinery assets.

Landwood Group are asset experts with their team of chartered surveyors, project managers, asset managers and auctioneers providing unrivalled expertise.

Formed in 2000, Manchester-based chartered surveyors Wignall Brownlow are specialists in the recovery sector including the appraisal and sale of machinery, equipment, residential and commercial property.

Mark Bailey, Landwood Group’s Managing Director, comments: “We have long admired Wignall Brownlow for their unrivalled reputation in the recovery sector. By joining forces with them we look forward to being able to offer a truly stand-out service for our clients.”

Wignall Brownlow Partner Jonny Brownlow, comments: “We are delighted to merge with Landwood and are looking forward to working with Mark, Helen, Richard and the Landwood team. The enlarged group will deliver a great service to our clients, providing real strength in depth.”

KPMG Corporate Finance Completes Record Year With 19 Completions Worth More Than £1.2BN in North West as Mayo Joins Manchester Office

KPMG’s Corporate Finance team in the North West has finalised 19 deals over the past 12 months with a combined value of over£1.2bn.

The practice, which is made up of 25 professionals, recorded one of its busiest periods on record. In recent weeks KPMG was the lead sell-side adviser to Warrington-based medical technology firm Aesthetic Technology and its sale to Omni Partners.

The performance comes alongside Christian Mayo, KPMG’s Head of Corporate Finance in the North, joining the firm’s Manchester office. Christian has joined the leadership team of the North West Corporate Finance practice which is now led by three senior dealmakers, including Head of Private Equity in the North, Rick Stark, and Nisha Sharma, who is Head of TMT in the North.

Christian, who lives in the city, has worked with KPMG for more than 24 years and was previously based in Manchester when he was made partner in 2006.

Christian Mayo, Head of Corporate Finance at KPMG in the North, said: “We’ve got a thriving and incredibly successful corporate finance practice in the North West, which is part of a 50-strong team right across the North and Scotland. I’m proud to continue to lead our teams across the region, which are superbly integrated into the local dealmaking communities and are behind some of the North’s most exciting transactions.

“From a personal perspective it’s exciting to be coming back home to rejoin the vibrant Manchester corporate finance community, focussing on our corporate finance offering on the ground here, alongside Rick and Nisha.

“That’s why over recent months we’ve continued to invest in the practice here and I’m delighted to welcome three new directors into the team, Amanda Ruddiman, Nicky Leonard and Patrick Simpson, taking the senior team in Manchester to eight partners and directors.”

Warren Middleton, Office Senior Partner at KPMG in Manchester, said: “Our corporate finance practice is one of the largest in the city and helps to make Manchester a thriving hub for regional and national dealmaking. With Christian, Rick and Nisha we have a formidable group of leaders that are supported by a diverse and talented group of professionals, which are fundamental to the multidisciplinary proposition we have for our clients in the North West, As we continue to invest in the practice, they can build on the strong growth that we’ve seen in recent years to further support corporates and investors achieve their M&A and fundraising ambitions.”

FW Capital Welcomes New Team Members After Funding Boost

FW Capital has welcomed two new recruits to improve its Northwest team after receiving an additional £9.48m funding boost as part of the Northern Powerhouse Investment Fund  (NPIF).

 

Caroline Turley and Steven Molyneux have been appointed as Investment Executives. Caroline is based in the Liverpool office and Steven in the Preston office. Both will assist in helping businesses across the region to access investment to support growth via the Northern Powerhouse Investment Fund. The additional £9.48m funding increases FW Capital’s Northern Powerhouse Investment Fund allocation to £172m.  This is from a starting position of £102m when the Fund was first established.

 

Both have over 25 years’ experience of working in the banking sector.  Caroline has worked for Yorkshire Bank as a corporate business manager and most recently in economic development at the Lancashire Business Growth Hub. Steven has worked in business relationship banking for both RBS and more recently at Handelsbanken.

 

Caroline Turley, Investment Executive at FW Capital explains: “I have worked in both the public and private sector in my banking and Business Growth Hub roles, and this has given me a good understanding of how businesses approach their funding needs and growth ambitions. This enables me to appreciate the challenges business owners encounter and the importance of working with organisations who take the time to get to know a business. I am able to combine this approach with my proven track record in lending to secure appropriate finance for growing businesses. It is a very exciting time of innovation in the Liverpool City Region, and I am looking forward to helping businesses across the city and the North West region to facilitate growth.”

 

Steven Molyneux, Investment Executive at FW Capital adds: ‘’As an Investment Executive at FW Capital, I will support businesses with their future growth aspirations,  particularly when they may have had difficulty in securing funding through the private sector. Having spent many years in the banking industry, I fully understand the challenges that many businesses face in accessing the funding that underpins their growth, and will use this experience and established network to ensure businesses across Lancashire and the North West can achieve their business goals.

 

Sean Hutchinson at the British Business Bank, said: “It’s great to see a growing team at FW Capital, that will work to bring access to finance to businesses across the North West. Caroline and Steven are valuable additions to the team, bringing a wealth of experience working with businesses, and I’m looking forward to collaborating with them to provide those across Merseyside, Lancashire and the wider North West with funding and advice to accelerate their growth ambitions.”

 

Loz O’Connor, FW Capital’s Fund Manager, said: “Steven and Caroline are excellent additions to our North West team and their appointments demonstrate our continued commitment to helping local businesses with their future development. Both have impressive backgrounds working in the banking sector and understand the obstacles faced by many businesses. Their expertise and knowledge is a great asset to our team and will help us to utilise further the financial support available from the Northern Powerhouse Investment Fund.”

 

FW Capital can provide loans of £100,000 to £750,000 in the NPIF region with a focus on Cheshire, Cumbria, Greater Manchester, Lancashire, Merseyside, and the Tees Valley.

 

The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European

BT Group Adds a £2BN to North West Economy

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· BT Group’s activities provided an estimated boost of almost £2bn to the North West economy last year and supported more than 20,000 jobs across the region       

· Estimates include the knock-on impact of the spend of employees and payment to suppliers in local economies in all parts of the country 

· The company spent around £420m with suppliers based in the North West last year 

 

The activities of BT Group added nearly £2bn to the wider North West economy last year and supported more than 20,000 jobs across the region, according to a new report published today. 

The report from consultancy firm Hatch looked at the spend of employees and suppliers of BT Group – which includes EE, BT, Plusnet and Openreach – and the estimated knock-on impact that has on economies across the country. 

The report found that BT Group, the UK’s largest telecommunications company which employs around 8,600 people across the North West, made a direct contribution to the region’s economy estimated at £1.2 billion in the last financial year (2021/22). Through the company’s employees and its supply chain, and their subsequent spending, Hatch estimates the resulting boost to the region’s economy came to a total of £1.86 billion. 

The company’s spending with suppliers based in the North West came to a total of £420 million. According to the study, BT Group’s combined activities supported a knock-on total of 20,800 jobs across the region.  

The report highlights BT Group’s presence across the North West and its current major investment in the rollout of full-fibre broadband and 5G across the country. It also profiles the range of activities by BT Group colleagues across the UK, from the volunteers helping care home residents avoid isolation and loneliness, to the teams protecting customers and the UK from cyber threats. 

BT Group is also transforming its offices and contact centres across the UK, including a multi-million-pound new hub at Manchester’s Four New Bailey, which is currently under construction and will provide a base for up to 2,000 colleagues. Once complete Four New Bailey will serve as one of BT Group’s key locations across the UK.

 

Offices in Belfast and Glasgow have also undergone major refurbishments.  

It is part of the company’s Better Workplace Programme, one of the largest workplace improvement schemes of its type ever undertaken in the UK. The five-year programme will see the company shift from having around 300 locations in the UK to around 30, with a focus on creating new, modern workspaces. 

Philip Jansen, Chief Executive of BT Group, said: “BT Group plays a vital role at the heart of the UK economy. We’re one of only a handful of companies that serves customers in every corner of the country. 

  

“We’ve continued our major investment in building next generation full fibre and mobile connectivity rapidly across the UK. We’ve already reached 9.6 million premises with full fibre, and our 5G mobile network now reaches 60% of the UK population. The benefits to families and businesses are huge: new jobs, economic growth and innovation, across every nation and region.  

  

“We’re also transforming BT Group so that we’re fit to power the UK economy of the future. Our new state-of-the-art offices, spread across the UK, are a central part of that, bringing colleagues together in brilliant spaces that will enable collaboration and help us to better serve our customers.” 

BT Group employees and contractors in key parts of the North West:

 

Liverpool 1,890
Manchester 1,370
Stockport 1,060
Salford 650
Warrington 720
Wigan 790

Half-A-Million Invested by Pilot Group Into Supercharging Its Energy Management Division

PILOT GROUP has recently revealed an investment of £500,000 into its Energy Management division as a way to help UK businesses tackle rising energy bills, by saving them money across their running costs. 

The injection of funds comes as Pilot Group progresses towards conserving a milestone £1.2 million in energy costs for organisations across the UK through the provision of its Energy Management System (EMS).   

An expert in sustainable technology based in Manchester, the investment will see Pilot Group bolster the products, services, and specialist team behind its EMS to achieve this. 

With Pilot Group’s EMS saving companies an average of 40% on energy bills each year, as well as significantly reducing their carbon emissions, the investment is a key component of the company’s timely strategy to rapidly expand its EMS provision.  

Earlier this year the Government announced an extension to its Energy Bills Discount Scheme for UK businesses, which originally ran from September to March 2023, extending this for another 12 months from April 2023 in a bid to support with rising energy bills.  

However the measure will provide a discount at a lesser rate than previously, meaning organisations across the country will still feel the pressure of increased costs and be less cushioned than before while weathering the energy crisis.  

As a result Pilot Group is seeking to further strengthen its EMS offering so it is well placed to help businesses combat these costs. 

One such way is that Pilot Group’s EMS is designed to control and monitor energy systems for businesses, with smart sensors and self-learning algorithm enabling heating systems to work more efficiently to reduce waste.  

A significant portion of the £500K investment has been made into expanding the EMS team so it is well-equipped to grow its presence in markets such as the manufacturing and retail sectors, as well as growing its service in a bid to meet growing demand. 

Earlier this year Pilot Group appointed Lee Morgan as Managing Director of the division to further drive it forward, and has further invested in bolstering its workforce across the sales, technical hardware and software, product development, and engineering disciplines . 

Additional employees to join the team include Product Manager Jordan Cooper, Joe Williams who is tasked with providing Sales & Operations Support, and Hannah Abbas as a Customer Service Manager.  

As part of the investment Pilot Group is seeking to hire a number of tech-focused roles in the near future who will be tasked with growing and fine-tuning the EMS service to further build upon its success. 

Coinciding with its thirty-year anniversary this year, Pilot Group is on track to support organisations to collectively reduce their gas consumption by 12million kWh during its financial year ending in June.  

The company believes the  investment in the EMS division will empower it to increase this figure in the year ahead. 

Lee Morgan, EMS Managing Director at Pilot Group, commented: “While the Government’s Energy Bill Relief Scheme provides welcome support, there is little doubt that the cost of energy bills will continue to give business owners sleepless nights in the coming years.  

“We don’t feel that organisations should have to go it alone when juggling their finances as a result of their energy bills, and that’s why we are here to support.  

“Our Energy Management System is second to none with a proven track record of providing significant savings for organisations up and down the country. We’re excited to make this investment in the system, and the fantastic team around it, so we’re well equipped in the years ahead to help businesses meet their energy challenges head on.”  

With a turnover of £45million and 160 employees, Pilot Group’s offer is focused on achieving carbon reduction and energy efficiency through the provision of energy management systems, electric vehicle charging points and traffic control systems. 

For more information visit https://www.thepilotgroup.co.uk/